Fewer new car buyers enjoy haggling amid ongoing agency model shift
The advent of the agency model, where car manufacturers take ownership of distribution, has been a dominant trend in the car retail market as more and more brands consider making the switching.
THE majority of car buyers would prefer to purchase their next car directly from a manufacturer, without haggling over its price, according to the latest research from Autocar.
According to Autocar Business research, 54.7% of in-market car buyers would rather purchase their next car directly from a manufacturer, with a fixed price, rather than negotiate with a dealer in the conventional way.
The research, which surveyed 1243 in-market car buyers, follows last week’s Autocar Business ‘Selling Cars in 2024’ webinar, which saw key industry figures discuss the future of car sales. Featuring insights from Philip Nothard, Insight and Strategy Director at Cox Automotive; Robert Forrester, Chief Executive at Vertu Motors; and Eurig Druce, Vice-President of Sales at Stellantis UK.
With transaction prices more consistent under an agency model, a significant 38.0% of car buyers would still be more likely to visit a dealership, rather than take their purchase online, suggesting the shift to a fixed price distribution model won’t spell the end for physical showrooms.
Autocar’s research reveals only 8.8% of respondents actively enjoy haggling, while the rest either dislike it or simply accept it as part of the buying process. More than a fifth of those surveyed (22.8%) say they have never haggled over the price of a car.
The advent of the agency model, where car manufacturers take ownership of distribution, has been a dominant trend in the car retail market as more and more brands consider making the switching.
Mark Tisshaw, editor of Autocar and Autocar Business, said: “Our research indicates the switch to an agency model will be popular with car buyers, many of whom clearly prefer a fixed price over the prospect of haggling. However, physical showrooms are likely to remain a key part of the process as buyers continue to seek the reassurance of a human touch when making their decisions.”
When asked to name the factors most likely to influence their car buying decisions, respondents cited manufacturer reputation as the most important element, followed by the availability of discounts and the overall list price.
